Tips for Buying a House After Bankruptcy

Recovery after bankruptcy can be hard.  You may want to own a home again but honestly don't know where to start.  It is common to have some fears when taking the next step and becoming a homeowner for a second time around.  Here are some tips to help you make the right choices and be successful.

Know where you want to live, for a long time

When you buy a home, you should know where you want to live and be winning to stay put.  If you can’t commit to one home for a long time, then consider renting until you can.  You don’t want to get into a situation where you buy a home, then a year later decide you want to move.  You may end up losing money even if prices from home are on the rise.

Start working on your credit now

Since you will need to have a mortgage to buy a house, you need to make sure that you check your credit reports, fix errors, and see where you need to make improvements to boost your score.

Buy a Home you can really afford

Don’t over buy on a home.  We all want a dream home but what is more important is that you buy a home you can actually afford.  Use an online calculator and take into consider things like the cost to heat or cool your home, how many repairs need to be done and if the home is the one you can stay in for a while.  Know your budget and stick too it.

Find the right lender

If you can’t put down the full 20% on your home, then find a lender that can work with you on a lower down payment.

Think about the area around you before you buy

Are the schools good?  Kids grow up and you will need to have elementary, middle and high school around you for the kids to attend.  Pick and area with the best schools that you can find.  You also will want to see if the home is close to work so that you can cut back on commuting costs.  Sometimes you can find the right house, in the wrong area.  Make sure you weigh all the aspects before you buy.

Ask for help

Find someone you can partner with for help.  You can talk with a financial planner, money adviser or money coach to help you make the right choice.  If you feel like you are not sure, you can always take the information on your homes to a professional, tell them what your budget is and ask them how to make it work for you.